Our Process For Exit Decisions (Part 2)
We have put together a brief note explaining how we take exit decisions.
Read MoreWill Technology firms take value away from Private Banks?
A question we introspect on significantly is whether the next stage of value migration in Banking will be from Private Banks to Digital players.
Our working hypothesis at present: well-run Banks will grow aggregate profits; however, their valuations will drift downwards as ROEs will decline.
Read MoreThe flaws of Sharpe Ratio
Sharpe ratio seeks to determine risk-adjusted returns, or “returns per unit of risk”. The higher the Sharpe ratio, the better the fund’s historical risk-adjusted-performance.
Solidarity’s Sharpe ratio since inception is ~2x that of the NIFTY. This implies for the same level of risk, we have delivered twice the return.
Read MoreDeveloping a process to shut out the noise
We have put together a brief note to discuss the importance of shutting out the noise and our process to do the same.
Read MoreOur perspective to some commonly asked questions (Part 1)
Enclosed note contains our perspective on some commonly asked questions.
Read MoreThe shocking resilience of India’s stock markets
Commentators are wondering why the Indian stock market is “shockingly resilient” amidst the devastation caused by the Covid second wave. Their premise is that Covid’s second wave is causing significant devastation and death. 2021 GDP growth has been downgraded. Rising raw material prices will erode margins. The virus has spread across the country and will cause massive unemployment. Analysts have started downgrading estimates. Stock price valuations are 2X of China. So why has the market fallen only 5% since February?
Read MoreOur perspective to some commonly asked questions (Part 2)
Enclosed note contains our perspective on some commonly asked questions.
Read MoreINVESTMENT THESIS ON INDIA MART-29 JAN 2021
We hold a position in India Mart whose price fell sharply since then by ~35% in the last two weeks.
In this note we explain
a) Our Investment thesis on the company
b) Our hypothesis on what could explain the decline
c) How we have acted post the steep decline
Is Value Investing dead ?
Over the last few years, traditionally defined “Value” stocks have continued to get cheaper while “Growth” oriented cos have done very well. The divergence is stark and is now prompting questions whether Value Investing is dead.
The categorization of stocks between “Growth” and “Value” is erroneous. Anything that is low PE multiple and out of favour with markets is typically labelled “Value” and anything with high multiples and fast growth is labelled “Growth”.
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